Tesco Plc reported a rise in sales in the third quarter, but kept profit guidance unchanged as higher costs and fierce competition squeeze the grocer’s margins.
(Bloomberg) — Tesco Plc reported a rise in sales in the third quarter, but kept profit guidance unchanged as higher costs and fierce competition squeeze the grocer’s margins.
Group sales rose 7.9% in the Christmas period, boosted by customers dining at home and hosting family occasions. Still, the UK’s biggest supermarket noted there are “challenging conditions ahead” as higher costs weigh on the business.
Tesco is fighting to keep shoppers loyal with high food inflation pushing consumers to visit the German discounters Aldi and Lidl. The grocer is extending a pledge to keep prices low in a sign of how supermarkets risk hurting their margins to try to maintain market share.
The shares fell 23% last year.
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